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It is hoped that some Government means, such as the Employees Retraining Fund, would help to improve the income of the low income group.
For those who have retired or who are in need of assistance there is the safety net provided by the Comprehensive Social Security Assistance Scheme.
On whether there would be a minimum benefit level or a pension, Mrs Chan said the MPF would operate on the principle of beneficiaries receiving what they had contributed over their working lives, plus the employers' contributions, and any investment returns or interests.
"There is no minimum benefit level as such. But there will always be the safety net by way of the Comprehensive Social Security Assistance payments for needy elderly people," she said.
She said it would not be right to provide a Government guarantee against benefit losses due to fraud or misfeasance because it could encourage aggressive or unscrupulous fund management, and would produce an unacceptable level of contingent liability for the taxpayer.
Mrs Chan said the Government's participation would be in the form of assisting the setting up of a residual pool scheme.
"This scheme recognises the fact that there will be some employers who, for one reason or another, are unable to find a private retirement protection scheme to accept them.
"To make sure they can comply with the law, they will be able to utilise the residual pool scheme."
Another advantage of the system, Mrs Chan said, was its portability of benefits from one scheme to another upon change of job which meant that the employee would always be able to tell how much he had accrued in his retirement protection account.
On worries about bankruptcy of a system in the MPF, Mrs Chan said it should not happen.